Spurred by globalization, a growing financial market, and the unprecedented advent of fintech start-ups, India is now a hotspot for evolution. As per an industry report, our fintech industry is set to grow up to a whopping USD 150 billion in the next 5 years. This comes as no surprise as the country was responsible for producing 8 privately-held start-ups in this sphere valued at over USD 1 billion in the last year.
There isn’t an iota of doubt about the fintech’s scope, and one of the top financial business leaders in India shared that it is about time that it was leveraged to its full potential. Sanjiv Bajaj, in an article he wrote, asks that financial literacy be an integral part of the school and college curriculum, as it is this that will also fan the entrepreneurial spirit of Indian youth.
With the backing of such titans and the government, it is no wonder that the country is currently among the leading hubs of the fintech revolution. Read on for a brief overview of the companies regarded as fintech leaders in India.
Paytm
Founded in 2010, Paytm is one of the largest fintech companies and a leader in the digital wallet market. It primarily functions through the transaction app and empowers the Indian consumer to transact digitally, whether it is to pay bills, buy travel tickets, or avail vouchers. It also features the Paytm Mall for shopping and Paytm Money, which offers wealth management services.
PolicyBazaar
PolicyBazaar was founded in 2008, and is an online insurance aggregator. It allows users to conduct free comparative analyses of policies offered in India. It offers access to accurate and transparent policy-related information, thus eliminating the sting of hefty commissions charged by agents. Currently, the platform sells over 4 lakh policies every month.
PhonePe
PhonePe is a digital payment platform that was founded in 2015. It is among the leaders in this space and enables UPI-based payments for recharges, bills, and money transfers. In India, over 5 million merchants have partnered with the platform and accept payments through it. PhonePe also allows users to invest, get insurance coverage, or buy gold through the app.
Lendingkart
Founded in 2014, this platform offers financing solutions for entrepreneurs in the MSME sector. It simplifies access to working capital as entrepreneurs can avail themselves of services easily with minimal paperwork. Lendingkart has sanctioned loans to 73,000+ enterprises and helps companies get the capital it needs to operate.
Mswipe
Mswipe entered the markets in 2011, and immediately became the go-to for point-of-sale (PoS) terminals. It offers a smart solution for merchants, helping them leverage the maximum out of their PoS devices. Thanks to Mswipe, business owners can accept all forms of payment, right from cards to NFC and QR-based options. It’s USP and the reason it is a FinTech leader is that the Mswipe systems are reliable. Even with a 2G connection, merchants can process payments for up to 15 hours on a single charge.
Billdesk
With over 2 decades in the market, Billdesk was among the pioneers in the online payment gateway technology in India. It was one of the first to be associated with online transactions and has now become a trusted ally for consumers. It helps the Indian consumer enjoy an easy experience when paying bills. Billdesk also simplifies recurring payments, further eliminating friction during online transactions.
Freecharge
Another entrant to the bill payment sector, Freecharge is now a household name. Launched in 2010, this Gurugram-based entity offers an all-in-one solution to consumers. Through the platform, consumers can pay a range of bills, right from utilities like power and water to metro, broadband, mobile, and landline bills. Going one step further, it allows consumers to buy insurance, opt for lending services, and has deals to facilitate savings too.
Zerodha
Zerodha, now a unicorn, is a fintech company that was founded in 2010 and offers a solution for retail investors. It allows brokerage-free equity investments and is a one-stop solution for those looking to invest in stocks, mutual funds, and derivatives. To adapt to the growing needs of investors, Zerodha also allows trading in government securities and bonds.
CRED
CRED is among India’s fastest-growing start-ups and it was just launched in 2017. It operates through an app, which is available on all platforms, allowing consumers to pay credit card bills, house rent, and short-term credit and earn rewards in the process. The platform only accepts users with a credit score of 750 and incentivizes growing this score through its services.
With the mushrooming of the smartphone market and the mounting demand for digital finance, the revolution was inevitable. Fintechs took the charge on this one, and incumbent financial players should be happy to collaborate to further the industry symbiotically. The existing innovation has already ushered in a new era of banking, and this revolution may very well be the gift that keeps on giving.